Card-debt boosts Barclays' profits

MATT Barrett, the £4.9m-a-year chief executive of Barclays, declared today that the bank had made a very strong start to the year, boosted by ever-greater spending by Barclaycard customers and a resurgence in demand for shares and bonds from private and institutional clients.

Barrett, who was attacked by shareholders over his pay package at last month's annual general meeting, said: 'We have made a strong start to 2004, demonstrating continued success in implementing our growth strategy both in the UK and internationally.'

He said the bank's profits had 'increased significantly compared to the relatively weak first quarter of 2003 and were well ahead of of the quarterly average for 2003'.

Last year Barclays made pre-tax profits of £3.8bn for the full year, a 20% increase on the previous one. That meant the quarterly average was a shade below £1bn.

Barclays said today that the profits growth was broad-based with sustained income growth underpinning increased confidence to invest in the future.

It highlighted the performance of Barclaycard where customers had run up higher balances which more than compensated for slightly lower margins after interest rate rises.

Investment banking arms Barclays Capital and Barclays Global Investors made a 'very strong start to the year' with the former seeing activity by investors at record levels and the latter benefiting from increased funds under its management.

On the High Street, retail banking made a 'solid' start with income up only modestly.

Barclays' own stockbroker Cazenove cut its rating on the stock to 'hold' from 'buy' following the results, dealers said.